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F&C Private Equity Trust Agrees New Financing Package With RBS

July 1, 2014

Samuel Agini



LONDON (Alliance News) - F&C Private Equity Trust PLC Tuesday said that it has agreed new financing arrangements with Royal Bank of Scotland Group PLC, which has supplied it with a new, five-year, GBP70.0 million unsecured committed facility.


In a statement, the trust said that the facility is made up of a EUR30.0 million term loan available from the end of September, and a GBP45.0 million multi-currency revolving credit facility available immediately.


The trust has been weighing up its options for funding the redemption of its zero dividend preference shares, which are zero coupon securities typically issued by closed-ended investment companies, and decided that the most cost effective and flexible means of doing so would be to increase and extend its current loan package.


F&C Private Equity said that the interest rate on the new loan package will be "significantly lower" than the original gross redemption yield, or yield to maturity, on the maturing zero dividend preference shares. The margin payable is less than the margin on the previous GBP50.0 million facility with RBS. It had been due to mature in February 2016 and has been cancelled.


"The board is pleased to have secured a facility which will fund the redemption of the ZDPs and believes that the new facility will allow the company to maintain a moderately but flexibly geared structure with the ability to draw its borrowings in multiple currencies and to maintain a fully invested portfolio," the trust said in a statement.







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Source: Alliance News


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